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Income Tax Act 2007

Deductions - Mineral mining expenditure - Classes of mining expenditure

DU 12: Meaning of mining rehabilitation expenditure

You could also call this:

“Explaining what counts as spending to fix up land after mining”

Mining rehabilitation expenditure is money you spend in New Zealand to fix up land where you’ve been mining. This includes the area where you have a permit to mine and any nearby areas where you’ve been doing mining-related work.

You might need to spend this money because of rules in your mining permit, agreements about using the land, laws about managing resources, or permissions from conservation or historic places authorities.

This kind of spending can also include money you pay to restore the area where you’ve been mining, either while you’re still mining or after you’ve finished.

However, mining rehabilitation expenditure doesn’t include buying land. It also doesn’t cover certain other mining costs or leftover expenses.

Remember, if you’re not sure about what counts as mining rehabilitation expenditure, you can check section DU 8(1)(a) to (c) for more information about what’s not included.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514129.

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Part D Deductions
Mineral mining expenditure: Classes of mining expenditure

DU 12Meaning of mining rehabilitation expenditure

  1. Mining rehabilitation expenditure—

  2. means expenditure that a mineral miner incurs in New Zealand directly in relation to rehabilitation of land that is the permit area of their mining operations or associated mining operations carried out as a result of—
    1. the mineral miner's permit requirements:
      1. the requirements of an access arrangement issued under the Crown Minerals Act 1991 or regulations made under that Act:
        1. an obligation of the mineral miner under the Resource Management Act 1991 or regulations made under that Act:
          1. a concession under the Conservation Act 1987:
            1. an authority under the Historic Places Act 1993; and
            2. includes an amount that the mineral miner pays to restore, or towards restoring, the area of their operations either during or after those operations; and
              1. does not include—
                1. the cost of land:
                  1. expenditure referred to in section DU 8(1)(a) to (c):
                    1. residual expenditure.

                    Notes
                    • Section DU 12: replaced, on (applying for the 2014–15 and later income years), by section 41(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
                    • Section DU 12(a)(iii): amended, on , by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).